Apple, TSMC Ink Deal Involving A-Series Chips For iOS Devices Starting 2014
The Wall Street Journal is reporting that Apple has inked a deal with TSMC (Taiwan Semiconductor Manufacturing) for the company to produce iPhone and iPad processors starting in 2014.
The deal was closed after the company met requirements from Apple regarding their speed and power usage. Samsung will remain Apple’s primary supplier for these components through 2014, according to TSMC executives. Apple is one of Samsung’s biggest customers for processors and memory chips. But the two firms compete directly in the mobile-phone market and have spent the better part of the past two years suing and countersuing over the look, feel and features of their gadgets.
The report states that TSMC plans to start producing the chips in early 2014 using 20-nanometer technology, which would make chips smaller and more energy efficient.
The two companies have been discussing their arrangement since 2010, with serious discussions on the process of creating the chips starting in 2011.
TSMC executives told the WSJ that Apple had asked to either invest in the company or to have TSMC set aside a factory specifically for Apple chips. Executives said they had denied both options because they wanted to keep TSMC’s independence and manufacturing flexibility intact.
We’ll see how this deal plays out for Apple and Samsung, it’s definitely worth keeping an eye on.
